Blaming soft demand for products in Asia and a seasonal slowdown in networking markets, Quality Semiconductor said it expects revenues in the current fiscal quarter to be 10 percent to 15 percent lower than the $18.5 million reported in the previous three-month period.
However, when compared with a year ago, Santa Clara, Calif.-based Quality Semiconductor said it expects to see revenue growth of 20 percent in its second fiscal quarter, which will end March 29.
With the shortfall in revenues, the company now expects to report a pretax loss of approximately $1.3 million to $1.6 million for the second fiscal quarter.
"We are disappointed with our anticipated performance in the second quarter," said R. Paul Gupta, president and CEO of Quality Semiconductor, which supplies logic and networking semiconductor products. "On the positive side, we have strengthened our product development efforts, especially in networking, with the addition of several key people." Among those joining the company was David Sear, executive vice president and chief operating officer, who has help develop a new 18-month road map for networking products, Gupta said.
"In addition, we expect market acceptance of our new clock management products will enable the company to increase revenue in this product area," Gupta added.
However, Quality Semiconductor sees a revenue shortfall primarily due to weaker demand for its networking products, which managers said was attributable to a traditionally slow quarter for networking systems' suppliers, intense competition, and a slowing of demand in the Far East -- especially in South Korea and Japan.
Quality Semiconductor is scheduled to release its full results April 22.